Wall Street is taking a cautious step back Wednesday morning, with futures pointing slightly lower after back-to-back record-setting sessions for the S&P 500 and Nasdaq. Traders are bracing for a heavy economic calendar — ADP employment, ISM services PMI, and factory orders — ahead of the monthly payrolls report later this week.
Dow futures are down roughly 0.08%, S&P 500 futures are off 0.03%, and Nasdaq 100 futures are nearly flat. The moves are modest, more of a breather after the recent rally than a directional shift.
What's Moving Markets Today
HPE surges 33% premarket after massive earnings beat. Hewlett Packard Enterprise reported fiscal Q2 results Monday evening that crushed expectations: revenue of $10.7 billion, up 40% year-over-year, and non-GAAP EPS of $0.79 versus the $0.54 consensus. The company raised its full-year outlook and pulled its long-term financial targets forward by two years. The stock is trading around $56 premarket — the undisputed story of the morning.
AI and semiconductors remain the dominant theme. Nvidia is trading near $222, and the AI momentum continues to lift the broader sector. Broadcom, AMD, and Micron are all seeing sustained interest as demand for AI infrastructure — servers, networking, accelerators — shows no signs of slowing.
Records keep falling. The S&P 500 closed Tuesday at 7,610, its third straight gain. The Nasdaq Composite crossed the 27,000 mark for the first time. The S&P has set 23 all-time highs in 2026 so far, extending the longest winning streak of the year.
Why It Matters
Today is one of the heaviest data days of the week, with three major releases in under two hours:
- ADP Employment (8:15 AM ET): Consensus expects 116,000–117,000 private-sector jobs, up from 109,000 last month.
- ISM Services PMI (10:00 AM ET): Forecast at 53.7 — expansion territory for the 22nd straight month.
- Factory Orders (10:00 AM ET): April data that will round out the economic picture.
The main event — the BLS nonfarm payrolls report — drops later this week and remains the most closely watched labor market data point.
The Iran factor: US-Iran peace talks are sending mixed signals. Iranian media reported a suspension of indirect talks, while the White House says "negotiations are continuing at a rapid pace." Markets have largely shrugged off the geopolitical noise, staying focused on earnings and AI momentum.
The Bottom Line
Wall Street is catching its breath after a record run, but all eyes are on the data. A strong ADP print could push indices to new highs; a weak one might reignite growth concerns just as the AI trade — underscored by HPE's blockbuster results — shows unprecedented acceleration. HPE is a reminder that the AI story runs far deeper than any single name.
